Every now and then I'll read the comments to an article to see what others might say about a product or service. Today, I was checking the comments concerning the review of a particular new car.
The car seems very nice and many folks had pleasant comments to make. Unfortunately, one person made an egregious error in calculating (I think just a guess, really) interest that might be due on a loan for this new car.
Let me give you some numbers. The car's price out the door that one might finance is a little over $37,000. The interest payments stated by one commentator was that a buyer might pay about $13,000 in interest for this loan. For a 60 month loan, the interest rate would have to be an outrageously high number, around 13%
I don't know how that calculation was made. By looking at current car loan rates in my area (see www.bankrate.com) the current rate would be most likely in the mid to high single digits range for a 60 month loan. Using a much more reasonable loan rate of 5% results in total interest paid of a little under $5,000.
My point is not to show you the affordability of buying an expensive new car. My point is to ask each of you to evaluate what you read with a critical eye. Just because a commentator (or blogger) puts it out there, it doesn't mean it's factual.